2017 goal is two more buy and hold rentals, and do our first flip.
I think that is conservative and doable. But my secret goal is to do 4 buy and holds and 2 flips…I only told this to one person and they scoffed at me, so now I’m REALLY motivated.
That’s the talk, here’s the action plan:
I bought a domain and have a company setting up my website and it will be live this week. I’ll order bandit signs with both the website (tell it to ya when it goes live) and a phone number that directs to my cell (either flip, sideline, or google voice- all three are free alternate phone numbers for your phone).
My marketing strategy is to target 3 neighborhoods to farm. Let’s call them A, B and C. I’m going to hit each one quarterly in rotation with yellow letters and postcards, alternating. (any advice here is appreciated, I’m guessing yellow letters is better and will be doing that first)
So neighborhood A in January, B in February, C in March- then back to A in April and so on. I’m going to target absentee owners with 50%+ equity, and buy the list from list source.
Bandit signs up on Friday late afternoon in the major intersections of these areas. Down on Monday morning. I’ve got a girl I can pay to put them up and take them down (my babysitter).
I’ll keep passing out cards to everyone I meet. I’ll post monthly ads on Facebook marketplace with a picture of $500 (looking for houses, $500 referral fee, you get the gist).
I think between the bandit signs and website, birddog cards and networking, and quarterly neighborhood farming, I can definitely do 5 houses next year.
So enough typing, I need to go buy my list and bandit signs!
My goal is to work this apartment deal. I am buying it for somewhere around $800,000. I have a deal with financing to put down $200,000. I am then going to raise the rents and reduce operating expenses to make the value around $1.3 Million. I am then going to refinance to 80% of the new value and cash out the difference of around $200,000. Then start looking for another apartment complex to buy with that $200,000. By the ear end I want to double my units and get all my investments back.
To relocate myself and live in a healthier living arrangement
To make 100 offers on real estate
To improve sales techniques
To get 5 pieces of real estate under contract
To successfully complete at least 1 wholesale deal
I am starting off the year cancelling my schedule to help fellow investors including Redstar, however we need to work on a few things.
I am looking at other opportunities for business, I have some out of the box idea’s I want to look at and I am working on some creative deals.
I have a restaurant deal I am working on and I have started to move to file a non profit corporation and file for 501c3 status.
I am going to stream line my structure and become more efficient, we won’t let anyone go but were working on redefining roles to become a more cohesive team. I have the best associates in the world and it’s a pleasure to work with these dedicated people.
I have been collecting a few cars and want to work on a plan to bring my collection together over the next 10 years, right now I have cars scattered around the country.
I am probable going to acquire a few more ranches this year, I love the wide open spaces and a long horse back ride in the country. I will most likely sell a house or two this year and acquire a few others as personal property.
I have not been into Africa this last year but intend to spend 2 or 3 weeks there this year.
I am thinking about my real estate portfolio and how to expand my goals without effecting performance.
We continue to core and reverse rotary drill our hard rock and placer properties and increase our gold reserves. Results from core drilling on a copper property we own were completed before Christmas and we now know we have proven reserves of over 500m pounds making it one of the richest individual properties in our mine holdings.
We currently hold millions of ounces of proven, probable and inferred reserves most in compliance with 43-101 standards.
I am going to give someone a rental property this year, I have not determined which house or how I do it but I purposed before Christmas to give one away.
I have not bought my Super Bowl tickets yet but will probable go again this year unless something better comes up, for the most part I have a blast at the big game and have been to maybe a dozen over the last 20 years.
Great motivation to see goals of other investors here! I am just starting out with real estate. I have read many books, and continue to study, but finally this year I am going to move forward and hopefully purchase a first rental property. I am excited to start the search for the right investment property!
esztanyo Let me make a suggestion. Instead of replacing your income, look at replacing your expenses. It makes it easier to quit your job. The typical American has about $4,000 of monthly expenses. If you get about $8,000 in passive income you never have to go to work again. You can do that with about 10 to 20 houses but to replace a $150,000 income takes 100 to 150 houses. If you can get freed up you can actually concentrate on your business instead of your bosses business. So get out following the fastest path you can.
Update. I bought it for $800,000 put $214,000 down all in. I am scheduled to refinance Wednesday on the increased value of $1,600,000. The bank is capping my cash out to the $200k I have in it not the 75% of the new value because of the short seasoning. It cash flows about $70k/year for a cash on cash return of 30% (until I cash out and then the return will be infinite). Cash to value increase is 400%. So that means I have a constant income of $70 (tax free so equivalent of $100k earned income) and all my cash back. So tell me again why we do real estate? Why do people gamble in the stock market.
While building my buyer’s list, I ended up getting hired by the largest house buyer company in town. I worked for them doing advertising for their radio show for 6 months, and in that time marketed a little bit for houses for myself, but hardly at all and not very successful. All my time was spent at work or keeping house/taking care of my baby (she was 6 months old in January).
I doorknocked my neighborhood and passed out cards in December and we got one that we closed in January.
Contracted our neighbor’s house 3 doors down.
Purchase price $136,000
Financing: Owner occupant, 5% down conventional
Moved into it in February and turned our old home into a rental.
Cashflow $420 a month.
Took me 6 months to realize the steady paycheck wasn’t worth my freedom to make unlimited money, so I gave 2 weeks notice and went on my own again in June.
Bought 50 bandit signs (really nice ones), have a working website for leads, phone number through sideline, and bought a list from listsource of about 6000 homes (cost $2k) between 50-100% equity in our target area, which is NW Houston.
Sent a mailout (click2mail, cost about $600) of 1700 postcards, got 3 calls, made 2 appointments, and got those 2 under contract.
One was a flip I locked up for $30k (ARV $120k) it was a really distressed hoarder situation going to the courthouse step auction in a week for 20 years of backowed HOA dues.
Profit potential $40-$60k off of it (ballpark numbers because I couldn’t see most of the house), got the HML lined up, everything going and then 2 days before auction the seller went dark on me and I lost the deal.
I thought I had a great relationship with the seller and it was in the bag. I don’t know what happened.
But she was mostly crazy so it didn’t get to me too much.
The other house I got under contract was a 2100+ sf 4/2 single story in our neighborhood.
Purchase Price $126k
Repairs $12k- carpet in bedrooms, update kitchen with granite, update bathroom vanities, some siding work in the back…otherwise being lived in by wonderful lovely people that have taken great care of it the 19 years they lived there.
The husband had worked for Enron years ago and lost everything when that stuff went down. I feel really good about this one because our original offer was $112 (I’d underestimated ARV at $185 and overestimated repairs at $30) and they countered at $126. So they got what they wanted for the house and ARV ended up being more and repairs less.
Tried to do 15% down financing with 100% rehab funds rolled in but the lender was awful and drug his feet and closing kept getting extended to almost 3 months.
I went to get a second extension to October 16th and the sellers said they couldn’t, they had concerns that we were having trouble with financing (I found out then that they had been under contract earlier in the year with an investor that couldn’t close).
I agreed to an Oct. 6 closing, which at the time was a week away, and walked out of the house really concerned…with the lender all we were waiting on was the appraisal…
Appraisal orders were backed up because of Hurricane Harvey, but I was going to buy this house one way or another.
So we used 100k private money (first time ever), and $26k of our own to close it.
(26k is everything we had- he sold his truck and I sold my car, each for about $15k, and we bought an 05 pathfinder which we now share lol)
I decided the numbers are so good I’m going to close on the house and figure it out afterwards.
AND THEN! I learned about cash-out refinancing. This changes everything for me. Like Bluemoon said, when you have no money in the deal the ROI is infinite.
We can get 80% of whatever it appraises at. The appraisal is ordered and we’re waiting on that number with baited breath.
We expect to be able to put about $50k cash in our pocket. And with a renter in there we should cashflow $500, and still have about $50k in equity.
I’m not doing as great as I had very optimistically overprojected earlier this year.
But we now have 3 houses! All in a great area of Houston that didn’t flood at all.
A year and a half since we started and the numbers should be looking like this at the end of 2017:
3 houses bought (total current market value $570k)
Equity in houses: $100,000
Cashflow: from 0 in June 2016 to approx $900 a month by end of 2017
Cash in pocket: from $26k to $50k
Least successful marketing: birddogs. Got NOTHING, not even 1 lead. Most successful: targeted mailout.
Still chasing this dream you guys, trying to maintain focus. Definitely need a better business and marketing plan, and to look at my goals more frequently than 2x a year.